Chat with AI
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031 Exercise 21
Give the journal entries necessary to record the following expenditures made by Lomax
Company during 2013:
a. Recompletion costs on well #560 of $50,000 for IDC and $20,000 for equipment.
The well was recompleted at 12,000 feet, which was a new producing formation.
b. Recompletion costs on well #820 of $90,000 for IDC and $10,000 for equipment.
The well was deepened to 15,000 feet to evaluate a new unproved horizon. Proved
reserves were not found.
c. Workover costs on well #310 of $15,000 necessary to restore production after sand
had clogged the tubing.
Company during 2013:
a. Recompletion costs on well #560 of $50,000 for IDC and $20,000 for equipment.
The well was recompleted at 12,000 feet, which was a new producing formation.
b. Recompletion costs on well #820 of $90,000 for IDC and $10,000 for equipment.
The well was deepened to 15,000 feet to evaluate a new unproved horizon. Proved
reserves were not found.
c. Workover costs on well #310 of $15,000 necessary to restore production after sand
had clogged the tubing.
Explanation
Verified
Verified
a.Recompletion cost on well $50,000 for ...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
